It’s that time of year again, getting your financial statements and compliance reporting processes in shape for your year-end single audit. Before your external auditors start their audit processing and testing you need confidence there will be limited or, hopefully, no compliance audit findings, especially repeat findings.
Before year end it’s not only important to take a close look at your financial statements and fiscal activities. You need to give equal attention to your financial aid department with respect to compliance and take a close look at the status of prior year audit findings. Not addressing your prior year compliance audit findings and assuring that your CAP (corrective action plan) was implemented and effective can result in undesirable implications.
According to the U.S. Department of Education, one of the top 10 audit findings is failure to take corrective action with respect to compliance audit findings from the prior year resulting in repeat or recurring comments. In other words, management failed to take corrective action.
Read my blog post, Have You Taken Care of Your Compliance Audit Findings?, to discover the four reasons repeat audit findings occur, how to develop a corrective action plan, and other considerations when preparing for your upcoming annual single audit.
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Stephen Bastardi, CPA, MBA, CGMA
Stephen Bastardi has more than 25 years of experience working with clients from a variety of industries and backgrounds. He has developed specialization in institutions of higher learning, closely held businesses, manufacturing, employee benefit plans, and non-profit organizations. Contact Steve at [email protected] or 714.990.1040.
Frazer LLP understands the unique needs of institutions of higher learning and the importance of maintaining accurate and reliable financial and compliance records. This is also true with respect to maintenance of your institution's accreditation. Our firm takes pride in maintaining continuous awareness of current legislation and industry changes that affect your institution.